Capricorn returns to the 11,000 mark

Spanish stock market falls a series of three negative sessions and recovered 11,000 points, driven by the prospect of further rate cuts. Investors are hoping to find some clue in Powell’s next appearance before Congress. While the Federal Reserve president continues to demand more evidence to support rate cuts, the market is already discounting two changes this year: There is a 70% chance that the first one will be in September. That is why the CPI data to be released tomorrow will be decisive.

At the business level, Enagas led the growth after announced it would sell 30% of its U.S. Tallgrass business to strengthen its commitment to hydrogen. It was followed by IAG, which is heading towards yearly highs after upping its investment advice again.

The market has already discounted the approval of the Air Europa purchase and the possible return of dividends. Grifols has resumed its share price growth, waiting to see whether the takeover bid will finally be delisted. On the negative side, Melia stands out, who will leave Capricorn for Puig at the end of the month.

In other markets, oil recovered after Fresh fall in US inventories will overshadow worrying Chinese demand data. Gold has risen again as a weaker dollar makes it comparatively cheaper. In fixed income markets, the risk premium in France remains high as investors worry about the stability of the new coalition.